COMM-3016EL Chapter Notes - Chapter 7A: Post-Office Box, Petty Cash, List Of The Shield Episodes
14 Mar 2018
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To safeguard cash and ensure the accuracy of the accounting records for this asset, companies need effective internal control over cash. Even with the increased use of electronic banking, a company may use different banks in different locations and different types of bank accounts. Having collection accounts in strategic locations can speed up the flow of cash into the company by shortening the time between a customer"s payment mailing and the company"s use of cash. The general chequing account is the main bank account in most companies and often the only bank one in small businesses. Cash is deposited in and disbursed from this account. Traditionally, companies also used imprest bank accounts for some disbursements such as payroll of dividend payments. Direct deposit is now much more common for these types of payments. Lockbox accounts are often used by large companies with multiple locations to make collections in cities where most of their customer billing occurs.
